Car Loan Comparison Australia

Car loans allow borrowers to buy a vehicle where they might not have the funds upfront. A car loan breaks the overall payment into smaller repayments made over time. You can choose from a range of loans to do this, including an unsecured or secured loan, with fixed or variable interest rates. Whether you're buying a new or used car, we compare 180 loans from more than 70 bank and non-bank lenders to help you find the right car loan for your needs. Start comparing below and start driving soon!

Car loan comparisons on Mozo - last updated January 18, 2021

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  • mozo-experts-choice-2021

    4.67% p.a.

    5.22% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 4.67% would cost $34,096.76 including fees.

  • 4.89% 8.89% p.a.

    5.44% 9.46% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,276.58 including fees.

  • 5.50% p.a.

    5.85% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.50% would cost $34,632.09 including fees.

  • 4.89% p.a.

    5.53% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,377.58 including fees.

  • 5.99% 21.99% p.a.

    7.26% 23.15% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,820.67 including fees.

  • 5.19% 18.95% p.a.

    5.46% 19.26% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 5.19% would cost $34,320.13 including fees.

  • mozo-experts-choice-2020

    6.79% p.a.

    7.16% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.79% would cost $35,729.09 including fees.

  • mozo-experts-choice-2021

    3.97% p.a.

    4.51% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 3.97% would cost $33,525.38 including fees.


^See information about the Mozo Experts Choice Car loans Awards

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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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Car loan resources

Reviews, news, tips and guides to help find the best car loan for you.

Find and compare top car loan deals

Finding the right car for you, at a good price, can be a challenging experience. We can’t help you navigate that road, but if you’re in the market for a car loan, we can help you find a great way to pay for your dream wheels.

A car loan can be a great way to finance the purchase of a new or used car, as it lets you spread your payments over a period of time, rather than taking a big hit all at once. You do pay interest of course, and you might want to consider whether fixed or variable rates are best for your needs.

A fixed rate will give you a precise repayment amount for the life of the loan, but you might be penalised if you want to make additional repayments or pay the loan out early.

A variable loan will generally have more flexibility around things like that, but you could end up paying more, if rates increase. Needless to say, if you want to save money, go for the lowest rate you can find.

Car loans can have things like sign up fees and monthly account fees, which can add up over time. Check out the comparison rate on the Mozo comparison table to give yourself an accurate guide to what you’ll actually be up for, including any fees.

Over the life of a loan your financial situation can change, so consider the level of flexibility you might want. For example, if you find yourself cashed up, you might want to make extra repayments or pay out your loan early without paying a penalty. Or, if things become tighter, a redraw facility could be an option to give you some extra cash when you need it. This kind of flexibility may add to your overall loan amount or monthly repayments, so always check the fine print before you sign on the dotted line.

If you’re looking to hit the road in a new set of wheels go to to compare car loans and start your journey.

January market update: Car Loans

At the turn of the new year, the car loan space remains relatively unchanged. Over the last month, many car loan lenders have kept variable and fixed rates as they are. 

Like in previous months, the most competitive variable rates are still lower than fixed rate products on the market. And although there were no changes to green car loans, rates continue to be strong.

Which lenders stand out? 

With minimal movements over the last month, the stand-out lenders have remained somewhat the same. 

For new car loan offerings, one lender dominates. After cutting its fixed rate by 150 basis points in December, Northern Inland Credit Union offers 3.99% (4.58% comparison rate*) on both its variable and fixed New Car Loan variations. This has left  the lender in top spot across both interest rate options. 

When it comes to used car rates, the market leaders are still the same. With Australia Military Bank offering the lowest variable option and Auswide Bank offering the lowest fixed option.

How about big name lenders? 

There has been no recent movement in car loan interest rates from big name lenders. CommBank and Westpac remain the only two banks to offer car-specific loan options. Westpac has one product available, its fixed rate Car Loan at 7.49% (8.68% comparison rate*). Meanwhile, CommBank offers a Car Loan at 6.99% fixed rate (8.05% comparison rate*), plus an option for students with its fixed Student Car Loan at 6.99% (7.69% comparison rate*).

Car loan rates of note in December

  • Lowest variable rate new car loan: Northern Inland Credit Union - New Car Loan - 3.99% (4.58% comparison rate*) 

  • Lowest fixed rate new car loan: Northern Inland Credit Union - New Car Loan - 3.99% (4.58% comparison rate*) 

  • Lowest variable rate used car loan: Australian Military Bank - Car Loan (Excellent Credit) - 3.99% (4.86% comparison rate*) 

  • Lowest fixed rate used car loan: Auswide Bank - Fixed Car Loan - 4.49% (5.10% comparison rate*)  

  • Lowest green car loan rate: - Clean Green Car Loan - 3.97% fixed (4.52% comparison rate*)

Written by: Polly Fleeting, Car Loans writer, 4 January 2021

What is a car loan?

A car loan is a type of personal loan that you use to purchase a vehicle. It is a secured loan, which means the vehicle you are purchasing is used as security against the loan you are taking out. 

These types of loans aren’t exclusive to new cars either: there are a range of providers that offer car loans for used vehicles too.

The best car loan for your needs will depend on a range of factors, such as the age of your car, what sort of flexible loan features you're after and the amount you want to borrow.

Just like personal loans, there's a huge range of car loans out there vying for your attention from a range of bank and non bank lenders. One sure way to find out whether the best car loan for you would be a low rate loan that does the job for less, or a jam-packed one with plenty of features... is to read this guide!

keys to your new car

Choosing between a fixed or variable rate

If you've done a little car loan comparing already, you may have seen the terms "fixed rate" and "variable rate" scattered about. Don't just pick one at random though, as your choice can majorly influence how many dollars you end up paying back in interest or fees. Ultimately, the rate type you opt for should depend on how you intend to use your car loan.

Fixed rates

Let's look at fixed rate car loans first, where the interest rate is guaranteed to stay that way for the entire loan term. So long as you follow your loan repayment plan, you will know exactly how much money will go to your provider in interest. On the downside, most fixed rate loan providers charge a fee when the total loan amount is repaid early, and many have limits on how much extra you can repay. This is why, when choosing a fixed rate loan, it's important to select a term that aligns with how many years you want to spend paying off your loan.

Variable rates

Unlike the stability that comes with fixed rate car loans, the interest rate with variable rate loans can change over the course of your loan term in or against your favour. Don't let that put you off, as they will rarely involve early loan repayment fees. So if your budget can handle a slight rate change, plus you want the opportunity to clear your debt whenever it suits, a variable rate car loan could right for you.

Features of a top car loan

Many car loans come with convenient features to make your life easier while paying them off, such as optional additional loan repayments and redraw facilities. Below is a run through of these aspects and more that you'll find in a top car loan.

featured of a good car loan
  • Low interest rate

We could go on and on about why the interest rate is important when you take out a car loan, but instead we'll run you through the following scenario...

Sarah has just secured her full licence after learning how to drive in her parent's car. Now she has a stable income, Sarah's ready to take out a car loan and buy one of her own. But which one should she choose?

Using Mozo's car loan comparison table, Sarah compares loans from a range of bank and non bank lenders against a car loan from her current banking provider. She soon narrows down her choices to a competitively priced loan from a new lender vs sticking with her current bank. Both have the features she's looking for in a car loan, like the flexibility to choose how frequently she can make repayments.

Say Sarah picks old favourite with a 12.74% interest rate on offer. She'll hand over $15,488 in interest for her $30k car loan over a 7 year loan term (on a monthly loan repayment plan). On the other hand, ditching bank loyalty and going for one of the lowest rates at the time of writing of 5.14%, means she'll fork out $9,705 less. It just goes to show you how much that one number can affect your hip pocket!

  • Little or no fees

Individually, monthly fees and signup costs may appear small, but they really do add up. One easy way to factor in all the costs involved with a potential car loan product, is to look at the comparison rate. This rate type is made up of overheads like the headline rate, application and ongoing fees.

Just remember, that even if you settle on a car loan with low fees, most providers will bill you more for making a late repayment.

  • Minimal early loan repayment penalty

Whether or not a car loan needs to have a minimal or no early loan repayment penalty will depend on who you ask and the interest rate you choose. Some people like sticking to the original loan repayment schedule as it suits their financial situation best, while others prefer keeping their early loan repayment options open.

  • Convenient extra repayments and redraw facility

If making extra repayments suits your style and you use the feature efficiently, you'll end up paying less in interest, as the rate is only applied to how much you owe.

Another top car loan feature is none other than having a nifty redraw facility to dip into extra repayments. You can use a redraw facility to pay for things when other life expenses crop up, then make extra loan repayments when you have cash to spare.

Keep in mind that some providers set redraw minimums and have redraw fees, which may cost more than what the flexibility is worth to you. Also we should mention that generally speaking redraw facilities only come with variable rate loans.

What types of car loans are available?

From online car loans to car loans for people with a history of bad credit, there’s a loan to suit every budget and lifestyle, to get you into your new set of wheels quicker. You can choose from an unsecured or secured loan, fixed or variable interest rate and opt to borrow from a lender ranging from a big bank to an online peer-to-peer platform.

Typical car loans include: 

What is the best car loan interest rate?

Whether you opt for a fixed or variable rate, choosing the right one on your car loan could end up saving you hundreds if not thousands of dollars. According to the Mozo database, car loan rates can range anywhere from around 3.00% to 12.00%. For the latest on how car loan rates are looking right now, check out our car loan interest rates page. 

Remember: When comparing car loan interest rates, always consider the comparison rate. This rate takes into account both the interest rate and other costs attached to the loan.

Where can I compare cheap car loans?

Finding a low interest car loan can mean paying hundreds of dollars less over the life of your loan - that’s a lot of extra money for you to spend on petrol, car insurance or fuzzy dice instead. And the good news is, it’s easy to compare cheap car loans online right here on Mozo. Use the comparison rate to compare car loans side by side as this rate takes into account fees as well as the interest rate and is designed to show the true cost of a loan.

Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian,,, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs about Car loans

 How to spot a car loan trap

To help you dodge a car loan trap, look out for the following telltale signs...

  • Interest rate is too high

Treat high car loan interest rates like bad omens and steer clear of them! When you secure your car to a loan, the rate should be reasonable rather than high. For a clear picture on the kind of rate you can expect, compare car loans at the top of the page.

  • Too many fees

Car loans with competitive interest rates can still sting you with monthly and sign up fees. It's a trap that can come back to haunt you over time. For instance, say you take out a $15k car loan and pay it off over a 5 year contract. Even if you have a low $7 monthly fee, over the course of the loan it will amount to a tidy sum of $420. Wouldn't you rather have that money in your bank account?

  • Not enough flexibility

There's nothing worse than choosing a car loan without enough flexibility when you need it. For instance, one car loan we compare allows you to make extra loan repayments, though there is no redraw facility available. For some this may be too constraining. It's important to weigh up flexibility with interest rates and fees, as you may be happy to compromise on the interest rate for the features you want.

Why are secured car loans are cheaper?

Now that you understand the difference between fixed and variable rates, let us explain the benefit of securing your vehicle to the loan. Car loans are typically cheaper than regular personal loans because they are often secured against the car purchase. As you know, shiny new vehicles are valuable assets, so when you tie one to a loan as collateral, you sign a contract stating your provider can claim your car if you default on the loan. In return for this security, providers offer more competitive rates, meaning you end up paying much less in interest!  What about used cars? When it comes to buying a preloved vehicle with a secured car loan, your options are generally limited. It makes sense, given second-hand cars are high risk purchases, as there's no guaranteeing they won't conk out unexpectedly and lose their value. New cars on the other hand, have warranties and could be resold more easily if a car loan provider tried to recoup its losses in the case of a car loan default. If you want to buy a used car, shop around here at Mozo, as some lenders can secure cars that have been on the road for a few years. Alternatively, you could pay a visit to our personal loans hub and choose from an array of unsecured loans.

Can I get a guarantor on a car loan?

Yes, you can get a guarantor on a car loan. These types of car loans can be handy for customers that may struggle to get lending approval on their own, such as people with bad credit, minimal or no credit history or young people.

How does a guarantor car loan work? Well, it’s when a family member or friend guarantees the loan, meaning they put up their assets as collateral or agree to make the remaining repayments if the borrower defaults on the loan. 

But guarantor car loans can be risky, because if the borrower does default on their loan, money or assets come out of the possession of the guarantor, not the borrower. So if you opt for this type of car loan, ensure you make all your regular repayments in full and on time.

Can I get a car loan as a student?

It is possible to get a car loan as a student, but you’ll need to do some shopping around to find a good deal. Whether you opt to take out a loan with a bank, credit union, online or peer-to-peer lender, you’ll likely find an option to suit you. 

Before you start your search for the right car loan, it’s crucial that you figure out exactly how much you can afford to borrow and pay back. Remember to budget for things like the interest rate, application fee, any ongoing fees and potential costs you may face (such as a late fee). Also keep an eye out for free extra repayments, it’ll give you the flexibility to put extra towards your loan if you want to.

What is the difference between a personal loan and a car loan?

The main difference between a personal loan and a car loan is that a car loan is secured against a vehicle you intend to buy, whereas a personal loan isn’t. Instead, a personal loan can be used to purchase a range of different things, and can be either secured (to say a vehicle or your home) or unsecured (meaning you don’t put up any assets as collateral).  

It’s important to keep in mind that opting to secure your vehicle against the loan often means you’ll receive a lower interest rate. This will save you money over the life of the loan.

How do I compare car loans? 

Whether you're looking for a$50,000 car loan for a luxury buy or a $5,000 loan for a second-hand set of wheels, it's super easy to compare car loans here at Mozo. Once you begin studying the tables at the top of this page, you'll begin to notice the key dealbreakers and benefits of each loan. After all, because you've read this far, you'll know what features matter to you! Choose your car loan by clicking on a blue "go to site" icon beside the product of your choice. You'll have the opportunity to apply via the provider's site.

What calculators will help me compare loans and repayments? 

Finance isn't so hard when you have calculators to do the sums for you! Here are three seriously useful ones we've developed for an even more thorough car loan comparison...

  • Switch and save calculator. As the name suggests, this tool is designed to calculate whether you'd be better off financially on another car loan than the one you have currently. Type in some key loan details, and Mozo will give you the results!
  • Car loan comparison calculator. Compare the cost of two loans by typing in key details like your interest rate, loan term, loan amount, and fees compared to another car loan product listed on our site.
  • Car loan repayment calculator. Want to know what your loan repayments would look like? Easy peasy, just type in the loan amount, loan term, interest rate and repayment frequency. This calculator will also tell you how much you'll pay in interest over the loan term.

What is a novated lease? 

A novated lease is another way to finance a new or used car. It is an arrangement where you make repayments on the vehicle with your pre-tax salary. You must make the arrangement with your employer under ‘salary sacrifice’. 

Ultimately, a novated lease can actually reduce your taxable income. Before tax, your employer makes the repayments on your behalf to your chosen financial institution. These repayments can cover the price of the car as well as ongoing running costs as well (which could include fuel, maintenance and insurance). 

And these leases don’t only last as long as you stay with your current employer. If you end up switching jobs, you are able to take the car with you. Just remember, you’ll need to either start making repayments directly yourself, or transfer the agreement to your new employer.

What is a chattel mortgage? 

A chattel mortgage is a formal financial term that essentially describes a car or equipment loan for a business. The “chattel” refers to the car or equipment, while the “mortgage” is another term for loan. 

The way that it works is the chattel mortgage allows a business to buy a car or equipment straight away. Then, from the income the particular asset generates, the loan is paid down incrementally (usually over 2 to 5 years). 

Like a regular car loan, if a business is unable to make their regular repayments, they may face repossession of the vehicle by their loan provider.

Should I consider leasing instead of buying a car?

Depending on your financial situation leasing a car may be a better option. However there are some pros and cons to doing this. These include: 


  • Monthly lease payments tend to be cheaper than car loan repayments 

  • Some car leases come with a maintenance package whether the upkeep costs are included in your lease payments 

  • Easier to switch to newer models when you want to

  • If you take out a novated lease, it reduces your taxable income 


  • You don’t own the vehicle (and you cannot claim it as an asset) 

  • You can’t modify the car 

  • You may face driving restrictions, such as a limited amount of kilometres over a certain period of time

  • More costly over time 

  • You cannot sell the car 

Can I get a car loan without a licence?

Yes, you can get a car loan without holding a licence. Depending on which state you are buying the car in, you may be able to buy and register the car as well without a licence. 

Remember, when applying for a car loan you will need identification documents to prove that you are you. So instead of a driver's licence you can use a combination of your passport, identification/photo card, medicare card, as well as your utility bill. 

Does the type of car I want to buy affect my car loan options? 

Yes, the type of car can affect your car loan options, mainly the price of the car and whether your is new or used. 

Some lenders have borrowing limits that may not go as high as you like if you are buying a brand new sports car. For example, one loan may only let you borrow up to $50,000 while another $100,000. 

Similarly, whether your car is brand new or used will determine your eligibility for certain loans. Some loans only allow you to buy new or demo cars, while others may allow you to buy vehicles up to 7 years.

How do apply for a car loan?

Get all your documents ready like 100 points of ID, proof of income and details of your assets and liabilities. You'll need to have a clean credit record, although this doesn't necessary rule you out. Want to know what car loan amount you can afford? Check out our what car can you afford guide.

Most car loan applications can be done online, and approval can take as little as a few hours or even minutes. If you prefer to apply in person, visit a local branch of your chosen provider (if there is one), or call its customer service hotline.

Want to apply right now? Navigate your way back to the very top of this page and click on a "go to site" button beside the car loan you want. Best of luck, and enjoy your new set of wheels!

Car Loan Reviews

Macquarie Credit Union New Car Loan review
Overall 10/10
Very good

To get a car loan from them is the best thing I have done. They are very helpful in hard times since l lost my job. Macquarie car loans have also been so helpful in this time of cov19.

Read full review

To get a car loan from them is the best thing I have done. They are very helpful in hard times since l lost my job. Macquarie car loans have also been so helpful in this time of cov19.

Customer service
Manwell, New South Wales, reviewed 4 days ago
People's Choice Credit Union Discounted Personal Loan review
Overall 8/10
Low interest rate.

Low interest rate, great customer service!

Read full review

Low interest rate, great customer service!

Customer service
Skye, South Australia, reviewed 5 days ago
CUA Secured Car Loan (Fixed) review
Overall 9/10
Very low interest rates, outstanding communication

Pros: -Clear communication via email and phone -Clear costs listed, no hidden costs or balloon payments -Extra repayments can be made in advance -Low interest rates, lower than car dealers and most other banks Cons: -No choice of car insurance company, must go with CUA's partner Allianz -Automatically on the 7 year loan option, with no communication to choose the amount of years

Read full review

Pros: -Clear communication via email and phone -Clear costs listed, no hidden costs or balloon payments -Extra repayments can be made in advance -Low interest rates, lower than car dealers and most other banks Cons: -No choice of car insurance company, must go with CUA's partner Allianz -Automatically on the 7 year loan option, with no communication to choose the amount of years

Customer service
Daniel, Victoria, reviewed 5 days ago